XSO 1.16% 2,833.6 s&p/asx small ordinaries

LIC myth

  1. 4,274 Posts.
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    I have been considering whether to buy an LIC or and ETF to leverage into small caps. Pro's of LIC is that if you get a gun fund manager you will outperform Con's are the fees and the fact that LIC's have a propensity to go to cash as one method of trying to outperform. Pro's to ETF's is that fees are substantially cheaper and remain 100% invested, but you can still decide to sell if you think the market is coming off.
    Below is a comparison chart of one of the best Fund managers in town, WMI and the Vanguard Small cap ETF. Te fact that WMI have gone 40% cash in the last 4 months is almost certainly the reason for the really bad underperformance. Even well respected fund managers can call it badly.... WMI VS VSO.JPG
 
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